China Solar Energy Market By Technology (Photovoltaic Systems and Concentrated Solar Power Systems), By Solar Module (Monocrystalline, Polycrystalline, Cadmium Telluride, Amorphous Silicon Cells and Others), By Application (Residential, Commercial and Industrial), By End-User (Electricity Generation, Heating, Charging and Lighting), By Region, Competition Forecast and Opportunities, 2028

Solar energy is defined as the energy obtained from solar radiation, which can be used and transformed into different forms of energy, that is electrical energy and heat energy. This energy is abundant and renewable, making it an attractive replacement to traditional fossil fuels, which are finite and add to climate change. Solar energy can be employed through various technologies, including solar cells that change sunlight directly into electricity, or concentrated solar energy systems. Also, solar cells utilize the heat of the sun to conduct electricity or hot water for various purposes. There are various advantages of using solar energy including reduced dependence on fossil fuels, more sustainable energy and reduced greenhouse gas emissions.

Growing Adoption of Renewable Sources for Power Generation to Boost Market

Renewable energy sources are regarded as the most viable alternative to conventional power sources like coal and oil. They help reduce carbon emissions and provide an affordable supply of daily power. Over 29% of the world's electricity is currently produced from renewable sources. In 2021, solar photovoltaic (PV) installed capacity was around 842.14 GW, making it the second-largest renewable energy source after wind. It is anticipated that it will also rise significantly and broaden the market in the coming years.

In developing nations like China, population growth has a direct impact on energy consumption and production. The most viable alternative to conventional power sources is power generation from renewable sources due to the growing need to reduce carbon emissions. The cost of coal and oil products is steadily rising. The construction of new grids and mass storage systems by utilities to use the energy produced by renewable sources is another reason for the expansion of the solar power sector.

Supportive Government Policies to Drive the Market Growth

One of the primary drivers of growth for solar energy in China is the government's support toward policies to achieve carbon neutrality. In addition, the nation is making significant investments in renewable energy in order to meet its two carbon goals; to achieve carbon neutrality by 2060 and peak emissions by 2030. According to China energy data, the nation invests the most in renewable energy worldwide.

Economies of scale and support for continuous innovation throughout the supply chain have been made possible by Chinese industrial policies that focus on solar PV as a strategic sector and on growing domestic demand. Due to these policies, the price of solar PV has dropped by more than 80%, making it the most cost-effective method of producing electricity in many parts of the world. The global limit for the assembly of wafers and cells, which are crucial solar-powered PV components, and their collection into solar-powered chargers (also known as modules) exceeded requests by at least 100%.

In addition, the country is one of the largest carbon emitters due to its numerous fossil fuel-based power generation facilities. The nation was responsible for about 30% of global emissions in 2021. As a result, the nation is making significant investments in solar power and other forms of renewable energy in order to meet its carbon-neutral targets. According to 2025 and 2030 mission, China intends to consume 20% non-fossil energy and 25% fossil energy. Additionally, by 2030, the nation intends to install more than 1200 GW of wind and solar power capacities. It is expected that it will also rise extensively and expand the market in the coming years.

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Integration of New Technologies to Hold Immense Growth Opportunity

Artificial intelligence can unlock the enormous potential of solar energy with the support of other cutting-edge technologies like big data, the Internet of Things (IoT), sensors, and distributed ledger technology.

China has driven down sun powered PV fabricating costs, helping spike the fundamental innovation's prosperity while simultaneously bringing about a significant centralization of worldwide PV supplies. Expanding and diversifying global production of solar panels, whose supply chains are currently heavily concentrated in China, will be necessary to ensure a secure transition to net zero emissions. Solar photovoltaic (PV) technology has emerged as the most cost-effective method of producing electricity in many regions of the world as a result of Chinese industrial and innovation policies aimed at expanding the production and markets for solar panels.

Adoption of Solar Photovoltaic (PV) Drives the Market Growth

Over the past decade, China has steadily replaced Europe, Japan, and the United States in terms of solar PV manufacturing capacity. Since 2011, China has created over 300,000 manufacturing jobs across the solar PV value chain and invested over USD50 billion in new PV supply capacity—ten times more than Europe. China currently accounts for more than 80% of all solar panel manufacturing stages, including polysilicon, ingots, wafers, cells, and modules. More than twice as much as China's share of global PV demand. Additionally, the nation is home to the ten best manufacturers of solar PV manufacturing equipment in the world. China has lowered the cost of solar photovoltaic (PV) worldwide, which has numerous advantages for transition to clean energy. At the same time, the degree of geographic concentration in global supply chains creates potential difficulties that governments must address.

The International Renewable Energy Agency (IRENA) has stated that China's installed solar photovoltaic capacity has reach 306.4 GW in 2021, up from 253.4 GW in 2020. The widespread installation of solar photovoltaic (PV) systems, particularly for utility projects, contributed to the expansion. The Center for Renewable Energy Development (CRED) in China wants to install more solar PV panels. The major solar power generating facilities use PV modules due to their versatility, so the country's growing solar capacity will likely have a direct impact on the solar PV market. In2022, the nation put into operation the 100 MW Xiangyang Solar PV Power Plant in Hubei Province, and this power plant project is still going on and the project requires a USD200 million investment. In addition, the nation intends to construct approximately 400 GW of solar and wind projects in China's desert region. By 2025, the plant is expected to be completed. As a result, it is anticipated that the developments in the solar PV will drive the solar energy market growth during the forecast period.

Recent Developments

• China Energy Engineering Group and Guangdong Power Engineering Company (GPEC) awarded the LONGi   module supply contract to the 400 MW (DC) Rabigh Solar PV IPP project in China in June 2022.
• In March 2022, as part of the third round of China's National Renewable Energy Plan (NREP), a contract to build the 300MW Saad photovoltaic (PV) solar project was awarded to China's Jinko Power. As part of the competitive tendering process (SPPC), Jinko Power and Jinko Power Dhafra Holding signed a power purchase agreement (PPA) with Saudi Power Procurement Company for 25 years.
• Covestro announced in January 2023 that it had signed a f multi-year power purchase agreement with the Chinese producer CGN. 300 GWh of solar and wind energy will be purchased annually from CGN under the terms of the contract.
• JA Solar and the Chinese municipal government of Erdos reached an agreement in January 2023 to construct a brand-new vertically integrated production facility. The new factory will receive USD 5.9 billion from the Chinese manufacturer of solar modules. The facility will be able to produce 100,000 metric tons of polysilicon, 20 GW of ingots and wafers, and 30 GW of solar cells when it is finished.
• In China's Shandong province, Huaneng Power International put into operation a 320 MW floating solar PV array in January 2022. In two stages, the project is being put into operation on a reservoir near its 2.65 GW Dezhou thermal power station.

Market Segment

The China Solar Energy Market is segmented into Technology, Solar Module, Application, End-User, Region and Competitive Landscape. Based on Technology, the market is segmented into Photovoltaic Systems and Concentrated Solar Power Systems. Based on Solar Module, the market is divided into Monocrystalline, Polycrystalline, Cadmium Telluride, Amorphous Silicon Cells, and Others. Based on Application the market is split into Residential, Commercial and Industrial. Based on End-User, the market is split into Electricity Generation, Heating, Charging and Lighting. Based on Region, the market is segmented into East, North, Northeast, South Central, Southwest, Northwest.

Market Players

The main market players in China Solar Energy Market are Zhejiang Chint Electrics Co. Ltd, JA Solar Holdings Co. Ltd, Hanwha SolarOne Ltd, Trina Solar Ltd, Yingli Green Energy Holding Co. Ltd, ReneSola Ltd, JinkoSolar Holding Co. Ltd.

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